India unveils smartphone PLI 2.0, targets indigenous design of 30 chipsets

The Indian government has begun collaborating closely with industry stakeholders to shape the next phase of its smartphone Production-Linked Incentive (PLI) scheme, often referred to as PLI 2.0. According to Union IT and Electronics Minister Ashwini Vaishnaw, this initiative will aim to boost the share of locally manufactured components in smartphones and other electronics to 35–40% over the coming years, building on the success of the current PLI scheme, which has been instrumental in attracting global smartphone manufacturers to India and propelling the country as a major production hub.​

Indigenous chipset design initiative
Ashwini Vaishnaw also announced that the government plans to design and manufacture 30 strategic chipsets within the country, catering to both domestic and export markets. These chipsets form a cornerstone of India’s semiconductor ambitions, intended to support core technologies across sectors like telecommunications, automotive, industrial electronics, and security. The goal is for these indigenously designed chips to reinforce India’s push for self-reliance and its emergence as a global technology and manufacturing hub.​

PLI 2.0 scheme and industry outlook
The new PLI 2.0 scheme is currently under detailed development in consultation with the industry. It will focus on deepening the electronics manufacturing ecosystem by increasing the domestic value addition and component manufacturing within India. Key industry representatives have expressed optimism, calling the move a “turning point” for the country’s electronics sector, and expect it to create a globally competitive ecosystem across components, sub-assemblies, and capital goods.​

Broader policy context
Work on chipset design is part of broader national semiconductor strategy efforts. In parallel, India has several fabrication and design projects underway and aims to substantially increase local capability in chip design and manufacturing over the next few years. The emphasis on indigenous chipset work is aligned with the government’s vision for strategic independence and economic security, reducing dependence on imports while serving both local and international markets.​

CT Bureau